The primary driver of commercial bank failures during the Great Recession was exposure to the real estate sector, not …

frictions in which bank assets are a portfolio of defaultable loans. We show that ex-ante imperfect diversification of bank … lending generates bank asset returns with limited upside but significant downside risk. The asymmetric distribution of these … returns and their implications for the evolution of bank net worth are important for capturing the frequency and severity of …

natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …

contagion which can be used to calibrate bank-specific capital and liquidity requirements and large exposures limits. We find … non-linear function of the combination of network structures and bank-specific characteristics …